Southeast Asia is witnessing a major shift in the corporate landscape, and this year, it won’t be any different as flexible working arrangements (FWA) continue to be a crucial factor in deciding employment. With the rise of technology and globalisation, companies are increasingly embracing FWA to attract and retain top talent in a competitive market. However, a lot of companies are still struggling to appreciate and acknowledge the importance of FWAs, which makes the discourse even more interesting.
Governments in the region are taking steps to formalise FWAs. Malaysia has taken the first step by amending its Employment Act in 2022, requiring employers to consider formal FWA requests. Singapore followed suit in December 2024 with similar legislation. While these measures mark progress, Asia Pacific still has a long journey ahead. Hong Kong, for instance, has one of the lowest FWA adoption rates, with 64 per cent of its employers failing to provide such options.
But as technology evolves, so do work structures. As remote work and flexible schedules rise, conventional office structures are becoming less common and outdated. In this age, professionals are seeking more than merely salaries and bonuses, they are leaning towards prioritising remote work, flexible working hours, and an improved work-life balance.
The current state of flexible work in Southeast Asia
The demand for flexible work is growing. In Singapore, 60 per cent of workers prefer hybrid models, while in Malaysia, 78 per cent of businesses are adopting them. This shift is driven by digital transformation and changing workforce expectations.
However, accessibility remains a challenge, particularly in metropolitan areas like Klang Valley. The consensus around flexible working in the region is generally favourable, but not fully implemented or accepted. Now that the Malaysian and Singaporean governments recognise the importance of FWAs to employees, organisations need to adapt and provide this flexibility to their employees. At WORQ, we identified this gap early on and developed a cloud-office network based on Transit-Oriented Development (TOD) principles. Our coworking spaces are strategically located near major train lines, encouraging the use of public transport and making work more accessible.
Southeast Asia’s digital transformation has also played a crucial role in shaping work flexibility. Industries such as e-commerce, financial services, and digital platforms are expanding rapidly, attracting investments and new businesses. One such initiative has been the collaborative work with the Malaysia Digital Economy Corporation (MDEC) through the DE Rantau program that empowers digital nomads and continues the growing culture of remote work environments, positioning the country as the first within ASEAN in terms of digital nomad hubs.
The rise of flexible workspaces
The momentum behind flexible work continues to accelerate in 2025, driven by evolving workforce needs and dynamic business landscapes. Since 2018, the flexible workspace field has risen 13 per cent in the Asia Pacific with core locations like Kuala Lumpur, Singapore and Jakarta leading the charge. To encourage further adoption of FWAs, governments are rolling out policies and incentives aimed at encouraging businesses to adopt FWAs in a bid to create a more adaptive and resilient workforce.
The question would be how these companies stay flexible in their own markets while providing such flexibility to their employees. It encompasses a strategy — the use of technology, optimisation of workspace solutions, and promoting a culture of trust and autonomy. Embracing hybrid structural models, building employee well-being into the system, and creating flex into the business model make the organisation very competitive while enabling its people for long-term success.
Malaysia’s Belanjawan 2025 introduces tax incentives for companies embracing FWAs, providing crucial support for women re-entering the workforce and caregivers balancing professional and personal responsibilities. These initiatives catalyze businesses facing financial constraints, enabling them to adopt flexible work models while tapping into a diverse talent pool beyond traditional hiring norms.
The right balance between well-being and work
Giving importance to finding the right balance between cultural traditions and modern workplace policies has been a priority for most employees in Southeast Asia. This balance is key to cultivating a sustainable work environment. While working hard and taking pride in dedication is being practised by most Asians, a rising concern that has been observed is employee burnout. A study by Naluri has observed that 63 per cent of employees across the various sectors in the region are struggling with burnout. Generation Z and the next generation, Alpha, value wellness and a healthy work-life balance. Companies will have to change to keep up with these changing expectations for building a resilient and human-centric workplace.
Coworking spaces can be a solution. These flexible workspaces are established to promote flexibility and at the same time, prioritise the well-being and productivity of working professionals. With goals of creating an environment that supports efficiency and comfort, these spaces have thoughtfully designed layouts, dedicated areas to unwind and ergonomic amenities that contribute to employee well-being. By embracing flexibility through hot desks, team rotation options, and strategically located TOD workspaces, businesses can minimise commute times and support better work-life integration, creating a more seamless and balanced work experience.
Human connection remains at the heart of a thriving workplace. When networking events and community-building programs are conducted in these spaces, professionals from various backgrounds are able to collaborate, share ideas, build strong professional relationships and grow their businesses. Following this, a dynamic ecosystem is developed, leading to sustainable professional growth and long-term success.
A flexible future for Southeast Asia
For companies looking to expand in Southeast Asia, flexible office spaces provide an efficient and cost-effective solution. The region’s fast-evolving business environment, increased digital adoption, and demand for agility are making traditional office setups even less viable for many companies.
Coworking spaces offer a hassle-free environment by eliminating long-term leases, office upkeep, and administrative burdens, allowing startups, SMEs, and MNCs to focus on growth and expansion. As Southeast Asia embraces hybrid work, coworking and serviced offices provide the flexibility and agility companies need to adapt to evolving workforce trends.
The article titled “2025 work evolution: Southeast Asia’s journey to a flexible future” was authored by Stephanie Ping, co-founder and CEO of WORQ
As featured in TechCollectiveSEA on April 21, 2025
